Determining how much you can afford before you begin your home search will save you valuable time.

Prequalification vs Preapproval

• Prequalifying for a mortgage generally helps you determine how much house you can afford.
• Most lenders require that your monthly mortgage payment, including principal, interest, taxes and insurance, range between 25 and 28 percent of your gross monthly income.
• Remember, becoming prequalified does not necessarily mean that you will be approved for a loan of that amount.
• Preapproval from your lender means that you have provided them with the necessary paperwork, and they have approved your actual loan amount.
• Having preapproval for a home loan will put you in a much better negotiating position, because the seller knows that you are able to obtain your loan to purchase their home.

Down Payment

• Many lenders require 5 to 20 percent down payment on your home
• 25 percent down or more may qualify you for a lower interest rate

I can help you locate a lender who will assist you in finding a financing package that best meets your needs.